Article 7. Small Facility Loan Guarantee For Developmental Disability Programs of California Health And Safety Code >> Division 107. >> Part 6. >> Chapter 1. >> Article 7.
This article shall be known, and may be cited, as the Small
Facility Loan Guarantee for Programs Serving People with
Developmental Disabilities.
The State of California has a compelling interest in the
development of facilities for community-based programs that assist
persons with a developmental disability living in an institutional
setting to transition to more independent living arrangements. In
order to meet this significant community need, it is further the
intent of the Legislature to encourage programs to seek funding for
facility development from private sources and with the assistance
provided pursuant to this chapter.
To achieve this purpose in determining eligibility for loan
insurance pursuant to this chapter, the following special provisions
apply to facilities developed pursuant to Section 4688.5 of the
Welfare and Institutions Code and meeting the intentions of this
article:
(a) For purposes of this article, the following definitions shall
apply:
(1) "Borrower" shall mean a political subdivision or nonprofit
corporation approved by the regional center as an ownership entity
that owns the project property.
(2) "Long-term residency lease agreement" shall mean a lease by
the borrower, as lessor, of facilities developed pursuant to Section
4688.5 of the Welfare and Institutions Code to a service provider
selected by a regional center, as lessee, having a term of at least
as long as the term of the insured loan.
(3) "Nonprofit corporation" shall mean a corporation formed under
or subject to the Nonprofit Public Benefit Corporation Law (Part 2
(commencing with Section 5110) of Division 2 of Title 1 of the
Corporations Code) or a limited liability company (LLC) whose sole
member is a corporation formed under or subject to the Nonprofit
Public Benefit Corporation Law (Part 2 (commencing with Section 5110)
of Division 2 of Title 1 of the Corporations Code) that meets
applicable sections of the federal Internal Revenue Code governing
nonprofit status.
(4) "Regional center" shall mean a private nonprofit corporation
that contracts with the state and is organized pursuant to Chapter 5
(commencing with Section 4620) of Division 4.5 of the Welfare and
Institutions Code.
(5) "Service provider" shall mean an entity with the appropriate
license, if required, that contracts with a regional center to
provide services to persons eligible for regional center services.
(b) Notwithstanding subdivisions (i), (l), and (m) of Section
129050, any loan made pursuant to this article for a nonprofit
corporation or a political subdivision may be fully insured equal to
the total cost of construction, improvement, and expansion, which may
exceed the current value of the health facility, including
improvements, when supported by other security for, or guaranty of,
the debt.
(c) The Golden Gate Regional Center, Regional Center of the East
Bay, and San Andreas Regional Center shall provide for, secure, and
ensure the full payment of a lease or leases developed pursuant to
Section 4688.5 of the Welfare and Institutions Code.
(a) Loans of under three hundred thousand dollars
($300,000) for any single facility for six or fewer developmentally
disabled shall have priority for obtaining loan insurance.
(b) The total amount of loans that may be insured pursuant to this
article shall not exceed one hundred million dollars ($100,000,000).
If any provision of this article or the application thereof
to any person or circumstances is held invalid, that invalidity
shall not affect other provisions or applications of this article
that can be given effect without the invalid provision or
application, and to this end the provisions of this article are
severable.
The office may insure, pursuant to this article, loans to
nonprofit borrowers that are not licensed to operate the facilities
for which the loans are insured, provided that the borrower has
entered into a long-term residency lease agreement with a service
provider selected by the applicable regional center to operate that
facility. The number of facilities for which loans are insured under
this section shall not exceed 100 and the aggregate amount of loans
insured under this section shall not exceed one hundred million
dollars ($100,000,000).